PT Solid Gold Berjangka | Gold prices break a new record, but may be near a peak
GOLD SOLID GOLD BERJANGKA, SG BERJANGKA , SOLID GROUP, PT SGB , SGB
Solid Gold Berjangka | Gold topped $2,800 an ounce for the first time ever on Wednesday, but one analyst warned that the upward movement for prices may be “limited” going forward as strength in Treasury bond yields is a reminder to investors of the high opportunity cost of the non-yielding precious metal.
The precious metal’s “allure is further evidenced by the resumption of net inflows” into bullion-backed exchange-traded funds and record global demand, he said, citing a report from the World Gold Council.
A report from the WGC released Wednesday said total gold demand, including over-the-counter, or OTC, investments that are not made on a central exchange, climbed by 5% year over year to 1,313 metric tons in the July-to-September period. That’s a record for the third quarter. It also said global gold demand based on value topped $100 billion for the first time ever.
Gold prices tend to decline when the dollar and Treasury yields strengthen, but it has actually climbed along with them in recent weeks, bucking its usually inverse relationship. A stronger dollar can be a negative for gold, which is priced in the unit, making it more expensive to users of other currencies. Higher Treasury yields, meanwhile, raise the opportunity cost of holding assets, such as gold, that don’t pay interest.
On Wednesday, the most-active December futures contract touched a high of $2,801.70 before settling at an all-time high of $2,800.80, up $19.70, or 0.7% for the session. Wednesday’s settlement and intraday high topped the previous records set just a day earlier.
Source : MarketWatch